"PSC Register" in UKApr 25, 2016
According to the Small Business, Enterprise and Employment Act 2015, all UK companies, not including publicly traded companies, must have a register of people who have major control within the company. This register of people with significant control (or PSC register) will have information on people who have 25% or more control of a company's voting rights or shares. Or, people who have control over the business as well its management.
Should a person or persons controlling the company be different from a company's shareholders, the PSC register at times will look different than the shareholder register of the company - and may actually be more interesting.
The public can check out any company's PSC register through the Companies House website.
All UK public and private companies must have a PSC register - the only companies that are not required to do this are publicly traded companies that report under the DTR 5.
By introducing the PSC register, the UK government confirms its commitment to providing corporate transparency.
It goes without saying that the requirement to develop and upkeep a PSC register, means more of an administrative headache for most UK companies and those in control of them. Some other consequences of the PSC register relate to:
Business Administration - businesses that have complex ownership structures may have a much harder time deciding who needs to be added onto the register. The process could take a bit of time to get done correctly.
International - the establishment of the PSC register should help parties from the UK and other locations to with the tracing of assets and enforcing judgements.
Share schemes for employees - what kind of impact will the PSC register requirement have on Employee Benefit Trusts?
Please talk to us if you have any questions on how the PSC register will affect your UK subsidiaries.